‘Amazon Bills’ Move Through Legislature

Wednesday, May 25, 2011

Marianne Russ, California Capitol Network

Audio

Aired 5/25/11

California lawmakers and business leaders are pushing legislation that’s often known as “the Amazon bill.” It’s actually a series of three measures that would force many out-of-state retailers to collect sales tax from California online customers.

California lawmakers and business leaders are pushing legislation that’s often known as “the Amazon bill.” It’s actually a series of three measures that would force many out-of-state retailers to collect sales tax from California online customers.

Bill Dombrowski is President and CEO of the California Retailers Association. He said local brick-and-mortar businesses are at a price disadvantage when online retailers don’t collect sales tax.

“This is not a big retailer versus small retailer," said Dombrowski. "This is physical retailers versus online. This is not a new tax. This is a collection issue.”

The bills target out-of-state retailers such as Amazon.com that use in-state affiliates to help market their goods. The Performance Marketing Association, which represents those affiliates, says the bills would devastate its members.

Large out-of-state retailers have also threatened to cut ties with affiliates in California and other states where similar legislation has been proposed.

Something must be done to keep an even keel on this issue. A brick-and-mortar building with business costs, employee costs, and the like can't compete against an online retailer with no overhead.

What's worse, some people don't care where they buy their product so long as they get the lowest price. If the government doesn't get a handle on this you will see more businesses close down due to unfair competition.